Tuesday, May 18, 2021

Category: Global Economy

Paris writes off 5 billion dollars of Sudan’s debt and lends it 1.5 billion dollars

France decided to write off five billion dollars from the debts of Sudan and Germany 360 million, and the international community in Paris promised to support the transitional process in this country, amid great hopes for the Sudanese government that the conference will contribute to its assistance in the reform process, payment of aid and write off debts.

Loans and debt write-offs
France announced a loan of 1.5 billion dollars to Sudan to allow Sudan to pay its arrears towards the International Monetary Fund, while the French President announced the cancellation of 5 billion of Khartoum’s debts.
German Foreign Minister Heiko Maas said that the Federal Republic of Germany will write off $ 372 million in bilateral debts with the African country.
Berlin will provide up to $ 109 million to help Sudan settle its debt arrears with the International Monetary Fund.

After 10 years of obstacles … Libya’s economy is on a date for recovery

The economic working group emanating from the international follow-up committee on Libya confirmed its commitment to support the national unity government on its way to rebuilding Libya, after a decade of economic crises as a result of the political division in the African country.

Egypt, the European Union, and the United Nations Support Mission in Libya and the United States, in their capacity as co-chairs of the Economic Working Group of the International Follow-up Committee on Libya, held a virtual meeting for the plenary session in which they discussed ways to benefit from the experience of the international community and the Libyan Economic Experts Committee as resources to support the national unity government, parliament and institutions The other Libyan woman is working to confront the economic challenges that have resulted from years of division and conflict.

The participants emphasized the priority of providing basic services to the Libyan people, strengthening economic institutions, revitalizing the private sector, and improving the budget process, while affirming their full respect for Libyan sovereignty.

The Economic Working Group called on the Libyan government and the international community to work together to achieve common goals in order to accelerate development, increase job opportunities in the private sector, and improve the standard of living for the Libyan people.

They indicated that the World Bank, the United Nations, and the European Union could provide support to the unity government through a “Peacebuilding and Recovery Assessment” as a tool to review and prioritize development needs to support the country’s reconstruction.

Renewable energy is growing at its fastest pace in two decades, with Chinese dominance

Renewable energy grew last year at the fastest pace in two decades led by China, according to the International Energy Agency report, while it will continue to grow in the next two years. Renewable energy production rose 45% in 2020 to 280 gigawatts last year, the largest year-on-year increase since 1999, even despite disruptions in supply chains and delays in construction activity due to the impact of COVID-19.

Positive outlook
Regarding the global renewable energy market, the International Energy Agency expects that 270 gigawatts of new capacity will be added this year and about 280 gigawatts in 2022.
These forecasts are more than 25% higher than the agency’s previous forecast in November, as governments sold unprecedented quantities of renewable energy and companies signed a record number of power purchase agreements.

Governments sold 75 gigawatts of wind, onshore, solar PV, and bioenergy last year, up 20% from 2019.
“Wind and solar energy are giving us more reasons to be optimistic about our climate goals, breaking one record after another,” said agency executive director Fatih Birol. “The increase in renewable energy capacity last year accounted for 90% of the total growth in the global energy sector,” he added.

The hegemony of China
China accounted for 50% of the growth in renewable energy capacity last year, and it will account for 45% this year and 58% in 2022. According to the International Energy Agency.
The total installed renewable energy in the world reached nearly 2,800 gigawatts in 2020 and China has a proven renewable energy capacity of 895 gigawatts, greater than the following five countries combined, according to another report published by the “Trading Platform” website.

In 2020, China acquired about a third of the installed renewable energy capacity in the world (about 32%), about 895 gigawatts, and it comes second in the list of the United States with a capacity of 292 gigawatts.
The combined capacity of the United States, Brazil, India, Germany, and Canada reached 809 gigawatts in 2020, and Japan is the only country with a capacity greater than 100 gigawatts, and Italy and France each have 55 gigawatts capacity in 2020.

Global increase
Total renewable energy capacity increased by 10% in 2020 from 2,538 gigawatts in 2019 to 2799 in 2020, while it did not exceed 1,330 gigawatts in 2011.
Wind energy witnessed a growth of approximately 18% compared to last year, reaching 733 megawatts in 2020 from 622 megawatts in 2019, while solar energy achieved a growth of 21.6%, rising to 714 gigawatts in 2020 after the figure was in the range of 587 gigawatts in 2019.
The Executive Director of the International Energy Agency, Fatih Birol, believes that governments need to develop policies to encourage more investment in solar and wind energy and the additional network infrastructure they will require, in addition to other renewable energy technologies such as bioenergy and geothermal energy.

Egypt expects its economy to grow by 5.3% in the medium term, and S&P will maintain its credit rating

Standard & Poor’s “S&P” agency maintained the sovereign credit rating of Egypt in the local and foreign currencies as unchanged at the level of “B” K while also maintaining the stable outlook for the Egyptian economy for the third consecutive time since the beginning of the Corona crisis.

The rating agency indicated in a report issued on Friday evening that the Covid-19 pandemic affected Egypt’s tourism income, export revenues, and increased its external debt, but it sees the country’s ability to access international financing markets with the support of reserves to cover a temporary increase in external financing requirements according to Reuters”.

Egyptian Finance Minister Mohamed Maait commented on the agency’s report that the Egyptian economy, according to Standard & Poor’s estimates, can overcome the negative repercussions resulting from the pandemic due to the improvement of major economic indicators, such as the stability of public finances and the existence of a large and reassuring foreign exchange reserve.

The Egyptian minister expected that Egypt’s GDP growth will achieve 2.8% during the current fiscal year, as a result of the positive and high contribution of several sectors, especially the information technology sector, the health sector, government services, the wholesale and retail trade sector, and the agricultural sector, which reduced the impact of Corona on Tourism, aviation, manufacturing and petroleum sectors.

The Egyptian Deputy Minister of Finance for Fiscal Policy, Ahmed Koujok, said that government debt rates are expected to decline as a percentage of GDP, and the burden of the debt service bill will decrease due to the continuing achievement of a primary surplus of 2% of GDP in the coming years. This is as a result of the Ministry of Finance’s efforts to extend the life of the debt, which reached 3.2 years during 2020, targeting 3.6 years by the end of June 2021, in light of the low domestic interest rates, which was supported by the agency, according to Koçuk.

Tariq Abdel-Rahman, managing director of Compass Capital, believes that “the price of the pound is expected to drop against the dollar in the event of escalating tension with Ethiopia over the Renaissance Dam file, and the slowdown in the tourism sector’s recovery may also put pressure on Egypt’s foreign exchange resources due to the slow vaccination. In addition to international factors such as high prices of wheat, corn and oil, which causes an increase in the value of foreign currencies needed for import operations.

Regarding inflation figures; Abdel-Rahman believes that it will remain among the targets of the Central Bank of Egypt in the event that the flows of other dollar resources stabilize.

Challenges and Opportunities Faced in Automotive Industry

There is no single industry in this world that doesn’t face problems or obstacles in its path to success. Once a wise man said that
” Where there are problems there are opportunities” keeping this thing in mind the automotive industry has been doing a lot of progress in its manufacturing sector as well as the R&D region. The EV tech is one of the most recent and innovative creations that the industry has given us, but there are also many challenges present in the automotive industry such as the rate of recall, the recycling issue, shortage of items, and so on.
Some of these challenges and opportunities are Been listed in this blog in a short and sweet explanatory manner.

1. Chip Shortage And Hike in their Price.

As the production of cars is increasing day by day one of the major issue faced by the automotive sector is the shortage of semiconductors and this particular thing has to lead to a slightly bigger problem that is the increase in the pricing of chips.
The Indian auto OEM has been getting requests from chip manufacturers to increase the respective prices of chips – this particular thing has been approved and said by 3 companies in particular to date and the number is likely to increase in the near future. The combined impact of the supply shortage and accompanied by the surge g demand has put pressure on prices. The hike may be up to 3-6% up to 2021. This problem caused not only the car sector but also the semiconductor industry is looking for other alternatives.

2. EV batteries and the economy.

The used or retired electric vehicle batteries of the old vehicles have the major problem that they are unable to store or produce the required energy as compared to the new one which is a fact. Due to this, the cost of maintenance and repair of the battery costs too high. So these batteries are sold and been recycled in a very innovative manner which stores energy.
“Relectric” An Australian technology developer Is building and selling units of repurposed expired or outdated Nissan Motor Co.Leaf batteries to create products capable of storing renewable power at the manufacturing facilities, Big farms, and also old mines. These are also called second-life battery systems harnessing the remaining life of the used EV batteries or packs.

3.) Hyundai’s Recall

The recall is nothing but the right of the customer of the vehicle to replace or repair any part of his/her vehicle (a condition that it should be original ) by the company or the local manufacturer/dealer of that company. A similar recall chain has hit the Hyundai company where it has recall 82,000 electric vehicles globally to replace their batteries after 15 reports of fires involving the vehicles have come forward. This is one of the most expensive recalls in history. This signals to us that how electric car defects could create
such high cost for the automakers.
Replacing an entire battery is a very hectic process that requires a similar amount of hard work and expense as replacing a complete engine of a traditional IC-powered car.

4.) Driverless Electric Buses.

Driverless Electric Buses is definitely a milestone of changing technology. This bus adapts the machine learning mechanism and learns all the things while operating and observing the process in detail. It also interacts with the traffic signal and works and drives accordingly. The stops and routes are programmed with the help of machine learning and this bus uses its own AI to learn and understand new concepts. It is majorly operating in a city named Malaga in Spain. It runs at 8 km ( Five miles) loop it does six times a day. It is also capable of using its intelligence and improving its decision based on data processed along the route.

Samsung plans to build $ 673 million worth of solar power plants in Texas

Samsung Renewable Energy – a unit of Samsung C&T Corp. plans to build $ 673 million in solar power plants in Texas, with the goal of selling the generated electricity from December 2023.

700 megawatts production capacity
The company will begin work on the new stations in June 2022, when it will produce about 700 megawatts, to be located specifically in Milam County – near Austin, where the subsidiary of Samsung Electronics owns a chip factory and is considering building another plant at a cost of 17 billion dollars, according to Reuters

The new solar power plants produce a combined total of about 700 megawatts, and an official in the company said, Sunday, that “Samsung Renewable Energy” is “proceeding with the approval procedures with the state,” explaining that “there are no current discussions with Samsung Electronics about the project.”

Chipmakers such as Samsung Electronics, Intel Corp, and Taiwan Semiconductor Manufacturing pledged to promote the use of renewable energy to reduce carbon emissions, while Samsung said in October it would halt new investments and projects related to coal.

Research by Harvard University, Arizona State University, and Facebook has shown that “chip-making requires large amounts of energy as well as gases and chemicals,” and it accounts for “most of the carbon output” attributed to data centers and mobile phones.
Global emissions fell by about two billion tons in 2020, the largest drop in history, after global aviation stopped and global oil use decreased due to the spread of Covid-19 and the restrictions it imposed.

Confronting climate change
Demand for “clean investments” in solar and wind energy is growing rapidly, as producing countries around the world try to switch from fossil fuels to cleaner renewable energy sources to help slow global warming.
The new US administration aspires that “all the country’s power will come from sources other than carbon emissions such as nuclear and renewable energy by 2035,” and this was an essential part of President Joe Biden’s election campaign, who returned the United States to the Paris climate agreement soon after his inauguration after Former President Donald Trump withdrew from it.

South Korean President Moon Jae, in turn, recently pledged to “end new financing for overseas coal projects”, stressing that “he will soon establish an ambitious timetable for reducing carbon emissions.”

Yesterday, Saturday, the Saudi Ministry of Energy announced that the Kingdom has joined the United States, Canada, Norway, and Qatar, to establish the “Zero Neutrality Producers Forum”. It is a platform through which oil and gas producing countries discuss how to support the implementation of the Paris Agreement on climate change, as bringing emissions to the level of zero neutrality are one of its main goals.

Saudi Arabia, the world’s largest oil exporter, announced in 2019 the launch of a carbon trading plan, with the aim of diversifying its energy resources and reducing its carbon emissions.

The Saudi Tourism Development Fund concludes an agreement worth $ 347 million to boost tourism in Medina

The Saudi Tourism Development Fund signed an agreement with Knowledge Economic City and Riyadh Bank yesterday to jointly finance 1.3 billion Saudi riyals ($ 346.64 million) to boost tourism in Medina.

The project “City of Knowledge Forum”
The project will be built on an area of ​​68 thousand square meters, with a total value of more than 347 million dollars, making it one of the largest qualitative tourism projects in Medina.

The project will include a 5-star hotel that will be operated by a global brand, in addition to many tourist and entertainment facilities, shopping centers, restaurants and cafes.

The project is located less than 6 km from the Prophet’s Noble Mosque and is easily accessible via the Haramain express train station located in the city of knowledge. 9 million tourists, according to the latest pre-pandemic report from Euromonitor International, and Saudi Arabia aims to reach 30 million tourists by 2030.

Partnership with the banking sector
The CEO of the Saudi Tourism Development Fund, Qusay bin Abdullah Al-Fakhi, explained that the volume of funding provided by the Fund for the City of Knowledge Forum project is $ 104 million.
Riyad Bank provided financing of the same value within the framework of the partnership agreement signed with the fund in late 2020 to finance tourism projects.
$ 204 million is the cost of implementing the first phase of the City of Knowledge Forum project, which includes the commercial market, the hotel and the Boulevard
The tourism sector in Saudi Arabia has started reaping the fruits of the fund’s partnerships with Saudi banks, with the aim of finding financing solutions for investors.
Saudi Arabia’s strategic vision aims to raise the contribution of the tourism sector to 10% of GDP and generate one million total jobs by 2030.
The repayment period extends over 13 years, noting that the financing amount covers 79% of the project development cost.
Fund tasks
The CEO of the Saudi Tourism Development Fund, Qusay bin Abdullah Al-Fakhi, said that in addition to financing specific projects through the capital allocated to it, the fund uses its partnerships with banks to provide appropriate financing solutions to investors in large projects.

It also provides financial and advisory support to small and medium companies and entrepreneurs, in addition to the Fund’s role in highlighting investment opportunities in various regions of the Kingdom and linking investors with project developers and global operators in order to increase their contributions to Saudi tourism.

The most famous ship accidents .. How much were the costs and compensation?

Ever given: Claims $ 900 million in compensation
The “Ever given” ship stranded in the Suez Canal caused disruption of navigation for six days until it was finally floated. Egypt seized the ship, demanding the owner company pay 900 million dollars in compensation, amid continuing talks between the two sides. The Suez Canal Authority had said that it lost between 12 and 15 million dollars a day as a result of the accident. The cost of disrupting navigation on global trade ranges from 6 to 10 billion dollars, according to “Allianz” Insurance.


CSCL Indian Ocean: Tens of millions
CSCL Indian Ocean is one of the largest container ships in the world, with the capacity to transport nearly twenty thousand containers. In 2016, it was stuck at the bottom of the Elbe River in the German city of Hamburg, despite the appropriate height of the river due to the flood, and rescue ships were unable to liberate it until several days later. The ship’s operator’s insurance company has paid for the re-liberation costs of tens of millions of euros.

MSC Chitra: Controversy over $ 66M
After colliding with another ship, the MSC Chitra on August 8, 2010, seriously tilted off the coast of Mumbai, causing the loss of about 300 cargo containers. But the ship did not sink, and months later it was sunk in international waters. The port management authorities demanded the owner company to pay compensation amounting to about 5 billion rupees (about 66 million dollars) due to the pollution it caused, as tons of oil products leaked from it. The dispute over compensation continues until now.

Rena: In compensation, $ 38 million
Not much was left of the cargo ship “RINA” in October 2011 after colliding with coral reefs off the coast of New Zealand, as it quickly split into two and separated from each other. Nothing was left of the ship except its bow after the rest of the parts were sunk with the containers it was carrying. In 2012, the ship’s owner agreed to pay compensation of $ 38 million to the company that removed the ship’s waste from the water.

MSC Naples: approximately $ 165 million
In 2007 the cargo ship MSC Naples lost part of its cargo after it ran aground off the coast of southern England. This resulted in the beautiful “Sidmouth” beach in Devon becoming a landfill. The beach cleaning and disposal work took more than two and a half years, and the damage amounted to 120 million pounds (about $ 165 million) paid by the owner company and the insurance company.


Iraq rejects a Chinese offer to buy Exxon Mobil’s stake in West Qurna

The director-general of reservoirs at the Iraqi Ministry of Oil, Muhammad Al-Aboudi, confirmed that the ministry was in talks with American companies to agree to buy Exxon Mobil’s share in one of the country’s largest fields, indicating that it had rejected a Chinese offer for this purpose.

In statements to Al-Sharq, Al-Aboudi said that a Chinese company submitted a request to buy Exxon Mobil’s 32.7% stake in the field, but the Iraqi government refused and demanded a two-month delay before accepting any offer submitted by other Chinese companies.

According to Al-Aboudi, this is due to the Ministry of Oil’s desire that the alternative to the American company is Western or American companies so that dealing with Chinese and Russian companies is not restricted to the field.

He pointed out that the withdrawal of “ExxonMobil” will not in any way affect the work in the field or its production capacity. It is likely that the ministry will buy the company’s share and assign a local company to work in the field.

This announcement comes at a time when Iraq suffers from an economic crisis imposed by the Corona pandemic, and the decisions of the Organization of Petroleum Exporting Countries (OPEC) and its allies, calling for a reduction in oil production.

$ 12.4 billion deal for Saudi Aramco pipelines with EIG consortium

Saudi Aramco has signed a deal with a consortium led by EIG Global Energy Partners (AIG), with investment returns estimated at $ 12.4 billion.

Under the deal, a recently established Saudi Aramco subsidiary, the Aramco Crude Oil Supply Company, will lease the rights to use Saudi Aramco’s concentrated crude oil pipeline network for a period of 25 years.

Aramco will control 51% of the new company, while the consortium led by EIG will retain a 49% stake. Aramco will retain full ownership of the pipeline network with operational control.

According to the agreement, the deal will not impose any restrictions on the company in terms of the amount of actual production of crude oil, which is subject to the production decisions made by the state, and in return, Aramco Crude Oil Supply Company will receive a tariff paid from Saudi Aramco for the quantities of concentrated crude oil that flow through The network and that tariff is linked to a minimum volume of these quantities.

Saudi Aramco’s president and chief executive officer, Eng. Amin Al-Nasser said the deal would strengthen the company’s capital structure and maximize shareholder returns.

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